Southern (NYSE:SO) & Enel Generación Chile (OTCMKTS:EOCCY) Head to Head Contrast

Enel Generación Chile (OTCMKTS:EOCCYGet Rating) and Southern (NYSE:SOGet Rating) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Enel Generación Chile and Southern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enel Generación Chile -13.90% -37.57% -20.67%
Southern 10.09% 11.35% 2.91%

Dividends

Enel Generación Chile pays an annual dividend of $1.75 per share and has a dividend yield of 18.6%. Southern pays an annual dividend of $2.72 per share and has a dividend yield of 3.6%. Southern pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southern has raised its dividend for 22 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Enel Generación Chile and Southern, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enel Generación Chile 0 0 0 0 N/A
Southern 2 5 2 0 2.00

Southern has a consensus price target of $73.29, indicating a potential downside of 2.52%. Given Southern’s higher probable upside, analysts clearly believe Southern is more favorable than Enel Generación Chile.

Valuation and Earnings

This table compares Enel Generación Chile and Southern’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enel Generación Chile $2.04 billion 1.26 $274.88 million N/A N/A
Southern $23.11 billion 3.45 $2.41 billion $2.16 34.79

Southern has higher revenue and earnings than Enel Generación Chile.

Institutional and Insider Ownership

60.6% of Southern shares are held by institutional investors. 0.4% of Southern shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Enel Generación Chile has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Southern has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Summary

Southern beats Enel Generación Chile on 12 of the 15 factors compared between the two stocks.

Enel Generación Chile Company Profile (Get Rating)

Enel Generación Chile S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile. The company generates electricity through hydro, thermal, and wind power sources. As of December 31, 2019, it had 6,114 megawatts of installed capacity with 28 generation facilities and a total of 110 generation units. The company also supplies its electricity to regulated electricity distribution companies; unregulated industrial firms primarily in the mining, pulp, and steel sectors; and the pool market. Further it provides engineering consulting services. The company was formerly known as Empresa Nacional de Electricidad S.A. and changed its name to Enel Generación Chile S.A. in November 2016. The company was founded in 1943 and is headquartered in Santiago, Chile. Enel Generación Chile S.A. is a subsidiary of Enel Chile S.A.

Southern Company Profile (Get Rating)

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services segments. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations. In addition, it owns and/or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, three nuclear generating stations, 13 combined cycle/cogeneration stations, 45 solar facilities, 15 wind facilities, one fuel cell facility, and four battery storage facility; and constructs, operates, and maintains 76,289 miles of natural gas pipelines and 14 storage facilities with total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 8.7 million electric and gas utility customers. Further, the company offers digital wireless communications and fiber optics services. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.

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